Impact of Regional Cultural Issues on Multinational Corporate Culture
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This report evaluates the impact of regional cultural issues on multinational corporate culture and the challenges faced by companies operating internationally.
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INTERNATIONAL MANAGEMENT
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................2 Task A..............................................................................................................................................2 Task B..............................................................................................................................................2 Impact of regional cultural issues on multinational corporate culture........................................2 CONCLUSION................................................................................................................................4 REFERENCES................................................................................................................................6 1
INTRODUCTION Internationalmanagementisapractiseinwhichindividualunderstandaboutthe international economics, changes in the international corporation and also creating global strategies of business. In this there are different skills on which the management is done that are critical thinking, problem solving skill and many more. This report will evaluate the comparison on the organization culture with regional culture of a financial company having head branch in Germany and more branch at South Africa, shanghai and Brazil. Further it will determine the impacts and issues of organizational culture and culture of multinational company when they are operating their business internationally. Task A Covered in PPT Task B Impact of regional cultural issues on multinational corporate culture There are number of issues that any multinational company uses to face while they are operating in different country in the world (Burritt And et. al., 2020). The regional culture system or individual culture is greatly influencing the corporative business culture with different aspects. When a company is entered the new market then there are different rules and regulation of that particular country which have to followed by the company to sustain there. The managerial functions are also being affected of corporative culturewhileoperatinginregionalculture(LuthansandDoh,2018).The communication is being changed as people at different place uses to communicate in different style and manner. They are not comfortable when different mains of communication is being used upon them. The employees who are working for the company in regional areas are also being motivated with different style at different places so if the corporate culture is being changed when the people of regional culture are not able to be motivated with the existing style which is used by company. Thepeopleoforganizationarealsousestoexpectsomethingfromthe organization where they are performing their activities (Kratzer, Meissner and Roud, 2017). When the company enter in regional culture then people of that area 2
have different expectation then the people who are working in corporative culture (Kalafatoglu and Mendoza, 2017). This influence company managerial function as well as operational functions. The decision-making is also get influenced by this as organizational cultural have to take decision keep in mind the people and tradition of the regional culture in which they are operating. The policies which are make by the company are also influenced by the regional culture such as labour laws, training practises which are affecting the e culture of the company when they are expanding their business in some other region. The business are being fail to adopting the universal model of business as the attitudes and buying behaviour of customers are impacted due to certain culture. Whenever company enter the new marketplace the model for performing the business activities should be modified to reflect the preference of the customers present over their (Arditi, Nayak and Damci, 2017). For example Tesco is a multinational company who is having its head quarter in Welwyn garden city, UK if they are processing the operational and managerial activities in Asia then they have to modified their products category as well because people in the UK and Asia have different product preferences. In this Tesco have higher risk as they are operating in the regional area and people are totally different in that area from the organizational culture. They may get fail to operate in that area because the risk is high due to different preference of the people at different places. The organizational culture and regional also have different people who are using different language to transfer their information and also communicate between each other while working for the organizational goal (Bouranta and et. al., 2019). Itbecome difficult for the company to change their operational language and perform the using different language. The customers are present in each culture needed to consume the products which is better in the market. So it becomes very hard to offer best quality at a reasonable price because the customers are also having different type of mentally (Kampf and et. al., 2017). Some customers preferring the best quality and ready to pay for that and other buyer in the market 3
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are in search of cost effective product which are less in price and higher in satisfaction. When the organizational culture come into a regional culture then they also face issues to market their products because in different places marketing is done in different styles and manner. So the marketing people of the company also have to adopt the way people are able to attracted towards the products and perform the marketing accordingly. For example when company like Asda who is an international company uses to operate in more than one company than they have to uses the universal applicable methods. When the Asda is selling their product internationally and having its network in more than one country then they should use in e-commerce website to sell their products. They should undertake the well-known international payment method such as Yandex, pay pal and many more tool which are used for international payment. Without using their kind tool and methods Asda can not able to continue the business in regional area. The different nations are also having different types of currency and when the Asda who is having their headquarter in UK. They will change the prices as per the current rate of currency have in the regional area (Döhner and et. al., 2017). The price is to changed as per the power of the currency in which area the goods are being sold. if the currency rate is not being Major then the profit of the company get affected or may company also face lose due to this. The organization culture of company also get influenced when the company go in regional culture (Harzing and van Ruysseveldt, 2017). For example as Sainsbury is an international company, and they are having flat system in the corporative environment and when they go into some other country then their organizational culture is also get influenced, and they have make change if the people of the culture prefers hierarchy structure then Sainsbury have to change accordingly. CONCLUSION This report concludes that the organizational culture and regional culture are having different aspects as people preference and style of performing their activities are different. The 4
organization have to make changes in their rules and regulation as per the preference of people in that particular nation or region. The financial company is being operating in Germany, and they are having their branches in South Africa and other region then company have check and make sure that rules should match the preference of the people in that area. Further it concludes that regional culture get influence when multinational company operates in their area. As the company's decision-making, style f leading the people over their and management of human resource is being smilier for all the branches. 5
REFERENCES Books and Journal Arditi, D., Nayak, S. and Damci, A., 2017. Effect of organizational culture on delay in construction.International journal of project management.35(2). pp.136-147. Bouranta, N. and et. al., 2019. The key factors of total quality management in the service sector: a cross-cultural study.Benchmarking: An International Journal. Burritt, R.L. And et. Aal., 2020. Multinational enterprise strategies for addressing sustainability: The need for consolidation.Journal of Business Ethics.164(2). pp.389-410. Döhner, H. and et. al., 2017. Diagnosis and management of AML in adults: 2017 ELN recommendations from an international expert panel.Blood.129(4). pp.424-447. Harzing, A.W. and van Ruysseveldt, J. eds., 2017.International human resource management: A critical text. Sage Publications. Kalafatoglu, T. and Mendoza, X., 2017. The impact of gender and culture on networking and venture creation.Cross Cultural & Strategic Management. Kampf, R. and et. al., 2017. Generational differences in the perception of corporate culture in European transport enterprises.Sustainability.9(9). p.1561. Kratzer, J., Meissner, D. and Roud, V., 2017. Open innovation and company culture: Internal openness makes the difference.Technological Forecasting and Social Change.119. pp.128-138. Luthans, F. and Doh, J.P., 2018.International management: Culture, strategy, and behavior. McGraw-Hill Education. 6